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PRINT THIS PAGE Rutland to sell Interfloor to EAC in £84.1m secondary buy-out19/08/2005. Source: AltAssets. 
 UK private equity partnership Rutland Partners has agreed to sell Interfloor Group to a management team backed by European Acquisition Capital in a secondary buy-out for a consideration of £84.1m.
Rutland formed Interfloor in May 2002 following the simultaneous acquisitions of Duralay from Cinven and Gates Consumer and Industrial from Tomkins for a combined purchase price of £60m.
Interfloor manufactures carpet and laminate underlay and related products. The company operates from two UK manufacturing facilities in Rossendale and Dumfries. It also manufactures and supplies a range of related accessories and tools. Interfloor has a separate subsidiary in Illinois, US, which manufactures underlay for the growing North American market.
After repayment of outstanding bank debt of approximately £27m and payment of various transaction-related costs and pensions contributions, distributable proceeds to shareholders are estimated to be £50m.
Nick Morrill, managing partner, Rutland, said, 'As an active investor, we believe we have helped management add value to a complex situation in order to improve trading performance. We believe that EAC are acquiring a strong business with a good future.'
Robert Mason, one of the founders of EAC, added, 'Interfloor is an exciting investment for us. It enjoys a leading market position and clear competitive advantages in a mature industry with high barriers to entry as well as a high level of operational gearing. We believe there is a significant opportunity to continue to improve the profitability of the business through initiatives to further enhance operational effectiveness and efficiency.'
The sale of Interfloor is the second full disposal by the Rutland Fund, the first being the successful turnaround and sale of Edinburgh Woollen Mill in November 2002.
Rutland invests in UK companies facing strategic challenges or which may be underperforming, in need of restructuring or entering a period of change.
EAC currently has total assets under management of over €400m. The firm focuses on investments in the following situations across the UK and Western Continental Europe: management buy-ins, industry consolidations, development capital/roll outs, and turnarounds.
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